TITRE DE LA PRESENTATIONSOUS‐TITRE DE LA PRESENTATION

Status of first generation of FLNG and trend and perspective for the next generation

Dominique Gadelle – Technip ‐ Vice‐President Upstream / LNG

Atelier 1 – La mer, nouveau terrain de conquête pour le GNL

Highest growth is in Asia Drivers are

GDP growth Urbanisation Political pressure in favour of clean fuels incl

gas China and India both have air quality issues in

the big cities COP21 concluded favourably for gas

China and India as biggest new markets Primary energy 13% CAGR over the last 9

years Still dominated by coal Gas market share growth will continue

Cost competition with coalPolitical support for environmental benefits

Natural gas market growth ‐ FLNG & LNG 

161412 NEW PLANT

1086 EXISTING PLANT

420‐2‐4

$/MMBtu

Projects with vastly different economics

Mature LNG plants GoM brownfield &Middle East

Greenfield US & East Africa

Australia & Canada

New plant

FLNG

inclusive of Upstream (field development) Pipeline Liquefaction

Breakeven FOB cost of LNG 

FIDFEASIBLEIN LOW PRICEENVIRONMENT

Only the most profitable projects are likely to go ahead

Technip an innovator in LNG ‐ DifferentiatorsYemen LNG

Prelude FLNG*

Yamal LNG

Hanas LNG

* Picture courtesy of Shell

An LNG EPC contractor for over 50 Years

Delivered with our partners to‐date 80 Mtpa of LNG production capacity including the world’s biggest LNG facilities: Qatar, Nigeria and Yemen.

Yamal LNG EPC currently ongoing

Leading in floating liquefaction (FLNG)

Diversity in scale, LNG technology and location

Leading in innovation rich areas Shell FLNG, Petronas FLNG 1, Browse FLNG (FEED)Mid‐scale LNG

Technologically strong: introduced manyconcepts to the industry that are widelyused today

Safety in design, modularization,marine works, global procurement…

Numerous FLNG studies for IOCs & NOCs

: Conceptual : Pre‐FEED                      : FEED                            : EPCICSmall =< 1.5 Mtpa < Medium =< 3 Mtpa < Large

Study Capacity

1981

1998

2002

2004

2008

2009

2010

2011

2012

2013

2014

2015

2016

FEED Barge Mounted FLNG MediumConceptual Study SmallConceptual Study MediumInternal feasibility Studies LargeInternal Pre‐FEED Study MediumConceptual Study MediumGeneric FEED LargeConceptual Study MediumConceptual Study MediumPrelude FEED LargeFEED Competition MediumFeasibility Study Arctic MediumPFLNG1  FEED SmallPrelude EPCI LargeConceptual Study MediumConceptual Study Phases 1 & 2 MediumPre‐FEED Study MediumConceptual Study SmallPFLNG1 SATU EPCI SmallPre‐FEED Study MediumBonaparte Pre FEED Competition MediumLean FLNG Pre‐FEED LargeConceptual Study MediumPre‐FEED Study East Mediterranean LargeAbadi Masela FEED MediumBrowse Pre‐FEED Study LargeFLNG Conceptual study MediumNearShore Conceptual Studies MediumCoral FEED Competition LargeBrowse FEED Study LargeNearshore GOM MediumNearshore FLNG East Africa Medium

• Pioneer in the 80’s• Internal studies as 

investment• Multiple FLNG 

capacities and types• Continuous 

activities since 2008, in excess of 9 Millions Mhrs

• Several conceptual studies, 7 Pre‐FEED, 8 FEED and 2 EPCI

Technip FLNG Main Experience

FEED

Shell Generic FLNG Generic – 2019

2005 2010 2015

Petrobras FLNGLula (offshore Brazil) – 2010

Shell Prelude FLNG Oceania (offshore Australia) – 2010

Petronas LNGSarawak (offshore Malaysia) – 2010/ 2011

Inpex Abadi FLNGIndonesia ‐ 2013

Shell Prelude FLNGOceania (offshore Australia) – 2011

Petronas FLNGSarawak (offshore Malaysia) – 2011

EPC

ENI Coral FLNGMozambique – 2015

Woodside Browse FLNGOffshore Australia – 2015

Shell Prelude FLNG First FLNG project ever sanctioned 

First of two FLNG projects for Technip

First FLNG under the TP/SHI Frame Agreement with Shell

Largest floating structure ever built

Largest multi‐centers offshore project ever (Paris, KL, Perth, Chennai)

200km from the nearest point on the mainland

200 ‐ 250m water depth

Commissioning at yard on‐going

Length: 488 meters, width: 74 meters Weight: Steel: 260,000 tons Displacement (tanks full): 600,000 tons

Comparison Eiffel Tower iron structure = 7,300 tons Prelude Steel: 36 Eiffel Towers Displacement (tanks full): 82 Eiffel Towers

Annual Production 3.6 Mtpa LNG capacity 1.3 Mtpa condensate 0.4 Mtpa LPG

Total liquid production: 110,000 boe/day

7

Petronas FLNG Satu

• Client: PETRONAS• Location: Sabah‐Sarawak waters, Malaysia• Scope: FEED and EPCIC• FEED: Jan 2011‐Jan 2012• EPCIC: Jun 2012 Completed• Partner: consortium with DSME• FLNG towed to site during May 2016• Commissioning activities on‐going

Floating Liquefied Natural Gas (FLNG) facility of 1.2 million ton per year maximum capacity The 300 meter‐long and 60 meter‐wide FLNG facility will be located offshore Malaysia

Malaysia

SabahSarawak

3 open sea projects at construction phase

FLNG project Country F.I.D.DistanceFrom

shore (km)

WaterDepth(m)

Meteo Operator CapacityMTPA

Prelude FLNG Australia 05 / 2011 210 250 Benign(Cyclones) Shell 3.6

Petronas FLNG1 Malaysia 06 / 2012 162 70 Benign Petronas 1.2

Petronas FLNG2 Malaysia 01 / 2014 112 1200 Benign Murphy 1.5

FLNG projects in progress

FLNG project Country F.I.D.DistanceFrom

shore (km)Operator

Capacity

MTPA

Exmar FLNGBarges 1 (& 2)

ColombiaCancelled 01 / 2012 Quay side Exmar 0.5

Go FLNG HiLi Cameroon 09/2015 20 Golar 1.2

2 nearshore projects at construction phase

Onshore LNG and FLNG export projects

0 20 40 60 80 100 120 140

TanzaniaMexico

MozambiqueCanada

ColombiaCameroon

IranEq Guinea

NorwayPeru

AngolaAbu Dhabi

United StatesPapua New Guinea

YemenBruneiRussiaOmanEgypt

Trinidad & TobagoNigeria

MalaysiaAlgeria

IndonesiaAustralia

Qatar

In operation October 2016

Under construction

Future projects

Estimated World liquefaction capacity (Mtpa)

Source: Technip Database

340 Mtpa

126 Mtpa

240 Mtpa

FLNG

Better security offshore Remote fields and deep water

Remote fields  Sensitivity to construction on the coastline   High cost of onshore construction

Pre‐Salt Associated Gas Difficult access to land Remote fields and deep water

Brazil

Africa

Nearshore Offshore East Coast High cost of onshore construction

Canada & Alaska

Australia

Many small fields Presence of subsea trenches

Asia / Pacific

Remote Fields

Arctic Circle

High cost of construction Sensitive political environment Difficult shore approach for feed gas P/L

Eastern Mediterranea

FLNG possible areas of developmentIn the current market only the most competitive FLNG projects will fly

Anticipating the future

Capitalize on the lessons learnt from the first projects to set the basis ofthe next generation of FLNG

When appropriate, repeatability is a must to tackle projects complexity Repeat design and execution plan to reduce EPC cost, schedule and risks Repeat collaborative project execution model

FLNG economics to be improved by production increase and innovation Individual unit capacity throughput increase and / or intensification to free

deck space to increase liquefaction capacity. Innovation: take credit of lessons learnt to validate good solutions and

implement new ones

Conclusion LNG has a bright long term future in the world energy picture

Floating LNG is reaching maturity. Numerous challenges have nowbeen met in design, engineering and construction

For given fields FLNG brings advantages over onshore LNG

Nearshore LNG can also be contemplated

The next generation of FLNG will benefit from Selective replication bringing schedule and cost certainty New concepts, that have been developed to improve projects economics

lean engineering large/intensified capacity FLNG concepts, with the possibility of replication, as

previously done for onshore LNG projects